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Is this the perfect Bull Trap? Head & Shoulder pattern visible on Nifty

If Nifty cracks below the 10,275 mark on closing basis it would lead to a larger structural breakdown on the daily chart.

Nifty staged a smart come back and just missed the 10,500 mark by a small margin. The index not only found support around the 10,300-10,275 area but it also coincided with the rising trendline support zone on daily chart. The current upmove has lifted support zone to 10,400.

Overall, there is a Head and Shoulder pattern which is clearly visible on the daily chart and the current scenario is a make or break one for the Nifty. If Nifty cracks below the 10,275 mark on closing basis it would lead to a larger structural breakdown. However, if Nifty pierces above the 10,620 mark it would negate the bearish Head and Shoulder pattern.

On the contrary, if Nifty cracks below the 10,275 mark on closing basis it would lead to a larger structural breakdown on the daily chart.

Bank Nifty, on the other hand, has already broken down from a Head and Shoulder pattern on the daily chart. However, the index has held above the 24,800 support zone and immediate hurdle is seen around the 25,500 mark. On the upside, for the bearish pattern to be negated, Bank Nifty has to rally past the 26,000 psychological mark on closing basis.

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